![]() Questions have been raised about how much HP knew of problems at Autonomy before the deal was approved by shareholders. ![]() HP called in PricewaterhouseCoopers to do a forensic review of Autonomy's historical financial results. The whistleblower gave "numerous details" of alleged accounting irregularities about which the company said it had no prior knowledge. The executive alleged there had been a "series of questionable accounting and business practices" prior to the acquisition, HP said. The Autonomy investigation is believed to have been started by a whistleblower in Autonomy's leadership who came forward after Lynch's departure. HP in turn pointed to a "significant" decline in Autonomy's core licensing revenues and said the division needed new leadership. He initially appeared to have Whitman's full support but blamed a lack of independence at the company for his departure. ![]() Lynch left in May as HP announced 27,000 job cuts world-wide as part of a $3bn-$3.5bn cost-cutting programme. The row contributed to the ousting of Apotheker after 10 months in the job. The deal soon soured as angry investors accused the company of over-paying. He initially called the merger "a historic day for Autonomy, our employees and the customers we serve". Lynch, a Cambridge tech star with a taste for koi carp and model railways, had been feted as one of Britain's most successful entrepreneurs. It would be kind of a big elephant to have missed."Īutonomy was one of Britain's brightest tech stars and helps firms store and search data across different networks, specialising in the search of "unstructured data" such as voicemail and email. "I can't understand how you can write down $9bn of value and say somehow this was all caused by something you didn't notice when you did due diligence with 300 people. "I think what has happened here is that they have got themselves in a mess," said Lynch. Speaking to the Wall Street Journal, he said he had been "ambushed" by HP, only finding out about the allegations when the company's press release appeared at 1pm UK time. It is understood it intends to pursue senior staff and could take action against advisers such as Autonomy's auditor Deloitte.Īutonomy founder Mike Lynch, who has flatly denied the allegations on behalf of himself and his management team, on Tuesday accused HP of destroying a "world leader" in less than a year. HP said it would attempt to recoup shareholder money by seeking "redress against various parties" in civil courts. Its shares had plunged 13% by mid-morning. The company reported a net loss of $6.9bn, compared with a $200m profit in the period a year earlier. The losses wiped out HP's profits for the latest quarter. The deal was brokered under HP's previous chief executive Léo Apotheker but finalised by current boss Meg Whitman, the former eBay chief and one-time candidate for governor of California, who joined the HP board in March 2011.
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